Taiwanese are more financially resilient today than they were two years ago, but the gap between those who can easily withstand unexpected events influencing their finances and those who cannot is growing, a survey commissioned by the Taiwan Academy of Banking and Finance found.
With economic effects of the COVID-19 pandemic easing, Taiwanese are about as financially resilient as Britons, Americans and people in other major economies in terms of keeping savings, meeting living expenses and having access to financial services, academy president Hank Huang (黃崇哲) said.
People’s ability to withstand unexpected financial risks was also slightly higher than in 2020, with 7 percent more people having at least six months of income in savings, he said.
Photo: CNA
However, the gap between high and low-income earners increased, Huang added.
The aggregate ratio between those with six months of income in savings and those with less was about 60 percent, with the resilience of middle-income earners especially hit by the pandemic, he said.
Overall, the number of people who reported being easily able to meet living expenses had more than doubled, from 12.2 percent to 27.3 percent, he said.
However, there were still almost 20 percent who said they would be unable to deal with a financial emergency, with only a small drop in this category from 19.5 percent in 2020 to 18.8 percent this year, Huang said.
Digital banking platforms have allowed uninterrupted access to financial services throughout the pandemic, with more people investing money, especially through fractional share trading, than two years ago, Huang said.
Overall borrowing capacity has improved, with 5 percent fewer people fearing they might be unable to borrow money in case of an emergency, and 40 percent of respondents saying they could obtain a mortgage or a loan from a financial institution, he said.
Low-income families were most severely affected by the pandemic, accounting for the majority of those reporting that they have trouble saving money or staying within their budget, Huang said, adding that this group was also the most vulnerable to financial fraud and exploitation due to weak financial literacy and insufficient financial confidence.
In terms of age, those aged 20 to 29 were the only group reporting a decline in financial resilience, he said.
“The decline in financial literacy, and poor savings and fundraising ability, in this age category demonstrates an urgent need for financial education for young people,” Huang said.
The Taipei Mass Rapid Transit (MRT) Wanda-Zhonghe Line is 81.7 percent complete, with public opening targeted for the end of 2027, New Taipei City Mayor Hou You-yi (侯友宜) said today. Surrounding roads are to be open to the public by the end of next year, Hou said during an inspection of construction progress. The 9.5km line, featuring nine underground stations and one depot, is expected to connect Chiang Kai-shek Memorial Hall Station to Chukuang Station in New Taipei City’s Jhonghe District (中和). All 18 tunnels for the line are complete, while the main structures of the stations and depot are mostly finished, he
The first global hotel Keys Selection by the Michelin Guide includes four hotels in Taiwan, Michelin announced yesterday. All four received the “Michelin One Key,” indicating guests are to experience a “very special stay” at any of the locations as the establishments are “a true gem with personality. Service always goes the extra mile, and the hotel provides much more than others in its price range.” Of the four hotels, three are located in Taipei and one in Taichung. In Taipei, the One Key accolades were awarded to the Capella Taipei, Kimpton Da An Taipei and Mandarin Oriental Taipei. Capella Taipei was described by
Taipei is to implement widespread road closures around Taipei 101 on Friday to make way for large crowds during the Double Ten National Day celebration, the Taipei Department of Transportation said. A four-minute fireworks display is to be launched from the skyscraper, along with a performance by 500 drones flying in formation above the nearby Nanshan A21 site, starting at 10pm. Vehicle restrictions would occur in phases, they said. From 5pm to 9pm, inner lanes of Songshou Road between Taipei City Hall and Taipei 101 are to be closed, with only the outer lanes remaining open. Between 9pm and 9:40pm, the section is
The Taipei Economic and Cultural Office in Vancouver, Canada, on Saturday hosted a reception to celebrate Double Ten National Day. Conservative Canadian lawmaker Marc Dalton called Taiwan a “beacon of courage and resilience in the face of rising authoritarianism,” according to a post on the Taiwan in Vancouver Facebook page. Also in attendance were fellow conservative caucus members Tako Van Popta and Chak Au, who said that Taiwan plays an “indispensable role” in ensuring global peace, prosperity and stability due to its strategic position in the Indo-Pacific region, it said. Canadian lawmaker Michael Cooper also recorded a message wishing Taiwan a
RSS